Dividend Income – June 2017 Update & Mid-Year Review

Summer is finally here in Vancouver! It’s certainly nice to see nothing but sun in the weather forecast for an extended period of time. That is way better than the rainy season we get in Vancouver for the rest of the year. Have you heard about the rain joke about Vancouver?

Vancouver doesn’t rain a whole lot, just twice a week. Once for 3 days, the other time for 4 days.

All the sun means that our garden is growing nicely. We have been harvesting a lot of strawberries, between 3-5 kg (6.6 -11 lbs) every other day! Home-grown organic strawberries taste so much better than store-bought ones. Our home-grown strawberries may look smaller than the ones you see in stores, but they are so much sweeter with more flavors!

Garden looking very green Kale Tomatoes are coming!!! 🙂 Carrots, garlic, peas, and pumpkins Home-grown juicy sweet strawberries. Yum!

The kiddos love picking strawberries and eating them right away. Although in Baby T2.0’s case, she doesn’t quite understand that she should only pick the red ones. Quite often she would pick a completely green strawberry, eat it, then have a yuck face due to sourness.

Baby T1.0 harvesting his carrots. He planted the seeds in the spring. Baby T2.0 managed to pick a red strawberry

We are also picking some fresh raspberries from the garden every other day. Thanks to having fresh kale, spinach, dill, parsley, carrots, basil, rhubarb, and salad from our garden, we are saving quite a bit of money on grocery. We are also freezing a few things for future consumption.

All these fresh berries and produce mean we are making a lot of yummy food at home too.

What kind of things have we been making?

Strawberry rhubarb and coconut cake!

Home-made pesto

Healthy kale chips

And various dishes from our cookbooks.

Needless to say, we have been busy both in the garden and in the kitchen!

Hold on, this is a monthly dividend update post and not a garden & food update right? Sorry for getting side-tracked. Let’s stay focused and talk about dividend income. 🙂

June Dividend Income

In June 2017 we received dividend income from 46 companies:

  • Pure Industrial REIT (AAR.UN)
  • Brookfield Renewable (BEP.UN)
  • BP (BP)
  • Care Capital Properties (CCP)
  • Corus Entertainment (CJR.B)
  • Canadian National Railway (CNR.TO)
  • ConocoPhillips (COP)
  • Chevron (CVX)
  • Canadian Tire (CTC.A)
  • Dream Office REIT (D.UN)
  • Dream Global REIT (DRG.UN)
  • Dream Industrial REIT (DIR.UN)
  • Enbridge (ENB.TO)
  • Evertz Technologies (ET.TO)
  • Enbridge Income Trust (ENF.TO)
  • Fortis (FTS.TO)
  • Hydro One (H.TO)
  • H&R REIT (HR.UN)
  • High Liner Foods (HLF.TO)
  • Intact Financial (IFC.TO)
  • Intel (INTC)
  • Inter Pipeline (IPL.TO)
  • Johnson & Johnson (JNJ)
  • KEG Income Trust (KEG.UN)
  • McDonald’s (MCD)
  • Manulife Financial (MFC.TO)
  • Magna International (MG.TO)
  • MCAN Mortgage Corp (MKP.TO)
  • Metro (MRU.TO)
  • Prairiesky Royalty (PSK.TO)
  • Qualcomm (QCOM)
  • Royal Dutch Shell (RDS.B)
  • RioCan REIT (REI.UN)
  • Saputo (SAP.TO)
  • Smart REIT (SRU.UN)
  • Suncor (SU.TO)
  • Target (TGT)
  • Unilever plc (UL)
  • Visa (V)
  • Ventas (VTR)
  • Vanguard Can All-Cap (VCN.TO)
  • Vanguard All-World Ex Canada (VXC.TO)
  • WestJet (WJA.TO)
  • Waste Management (WM)
  • Wal-Mart (WMT)
  • Exco Technologies (XTC.TO)

In total we received $1,269.43 in dividend income.

First of all this is an all-time record! Woohoo! Second, it is crazy that we received dividend income from 46 companies! Talk about diversification.

Out of the $1,269.43 dividend income that we received in June, $287.57 was in USD and $981.86 was in CAD. Please note, we use a 1 to 1 currency rate approach. Therefore, we do not convert dividends received in USD to CAD. We are ignoring exchange rate to keep the math simple. This is our way to avoid fluctuations in dividend income over time due to changes in the exchange rate.

The top 5 dividend payouts in June 2017 were Manulife Financial, Suncor, Enbridge, Cheveron, and Intact Financial. The top 5 payouts accounted for 31.55% of our June dividend income.

Dividend Growth

Despite having a record dividend income month, we saw a lower than usual YOY growth rate. At 15.47%, this is the lowest YOY growth rate so far in 2017. Obviously as we get higher dividend income, it becomes increasingly more difficult to get more than 15% YOY growth. I have mentioned this fact numerous times already.

At the mid-year mark, we are tracking an overall 20.52% YOY growth rate. Still very respectable but we are starting to see this number dipping lower each month.

Dividend Increases

In June a number of companies that we own in our portfolio announced dividend increases:

  • Target raised its dividend by 3.3% to $0.62 per share
  • General Mills raised its dividend by 2.08% to $0.49 per share

These announcements have increased our annual dividend income by $5.2. Not a great month when it comes to dividend increases but an increase is better than no increase at all.

Dividend Stock Transactions

In June we made perhaps some controversial stock transactions.

We liquidated all of our positions in

  • Kinder Morgan Inc (KMI)
  • Royal Dutch Shell (RDS.B)

With the proceeds from these two interactions and some added US cash, we then purchased

  • 25 shares of Costco (COST)

As I stated in the post, I don’t feel as confident with the oil sector. While KMI is a pipeline company rather than an oil-producing company, I simply believe that our money is better off invested somewhere else. I like Costco’s business model and believe they will continue to grow in the future.

The market has been quite volatile the last few weeks. We are monitoring a few stocks and see whether to pull the buy trigger or not. It is nice to have some cash reserve available to pull the buy trigger whenever there is a buy opportunity.

2017 Mid-Year Review

With half of 2017 is in the books, it is time to do a mid-year review. So far in 2017 we have received $7,156.76 in dividend income or $1,192.79 per month. If we receive the same amount for the rest of the year, that would result in dividend income of $14,313.52 for 2017. This is below our goal of getting $15,000 for the year and indicates that we have some work to do. Having said that, as we continue adding new capital in our portfolio, I strongly believe that our 2H 2017 dividend income will be higher than 1H.

At an hourly wage of $40 ($83,200 annually), this means we have saved ourselves almost 179 hours of work. This corresponds to 22 days or 4 weeks of work. By having our money working hard for us, we were able to save ourselves some time. Gotta love that!

Previously I did an analysis on our expenses after 5 months. Based on the analysis, we are spending $3,844.83 per month. So at $1,192.79 average monthly dividend income, the dividend income can cover 31% of our monthly expenses. Clearly we are still ways away from reaching financial independence.

So where does that leave us?

We will continue executing our dividend growth investing strategy by:

In addition, we need to continue tracking our expenses and see what we can optimize and reduce. We are also trying to side hustle more to bring home additional income.

Summary

June was an excellent month. It is always nice to have a record-setting dividend income month with money coming from so many different sources.

Since we liquidated a couple of positions and added a stock with a lower yield, we need to purchase more stocks in the future to make up for the difference and continue the dividend income growth.

Dear readers, how was your June dividend income?

 

Written by Tawcan
Hi I’m Bob from Vancouver Canada, I am working toward joyful life and financial independence through frugal living, dividend investing, passive income generation, life balance, and self-improvement. This blog is my way to chronicle my journey and share my stories and thoughts along the way. Stay in touch on Facebook and Twitter. Or sign up via Newsletter